Resales and New Sales Soar Through The Roof
Below are the TREB resale numbers for the last 5 months and their counterparts for a year ago.
March 2010 10,430 March 2009 6171 +69%
February 2010 7291 February 2009 4120 +77%
January 2010 4986 January 2009 2670 +87%
December 2009 5541 December 2008 2577 +115%
November 2009 7446 November 2008 3640 +105%
October 2009 8176 October 2008 5155 +64%
Below are the days on market for the past 6 months and their counterparts for a year earlier.
March 2010 20 March 2009 40
February 2010 22 February 2009 45
January 2010 28 January 2009 49
December 2009 27 December 2008 45
November 2009 26 November 2008 41
October 2009 26 October 2008 37
It is clear what we are seeing here – a total and complete recovery in our resale market. Where is it going now? Consider this, in the GTA there are very few new houses being built. The inventory is fixed. Expect single family home prices to rise. Expect buyers to be forced into the condo world for the following three reasons:
1. Lifestyle choice
2. The high cost of a freehold home
3. The lack of inventory of freehold homes and the fact that the inventory around the core is fixed.
While condo prices will continue to rise, it will be at a slower pace than freehold homes due to the lack of inventory of the latter and the potential for growth of the former.
Expect real estate to perform well in Toronto while the economy grows. We have just started a recovery from an awful, but short, recession. It is very unlikely that prices will fall in a period of economic growth and prosperity. We will not see a continuation of the stratospheric rise in pricing. Prices will continue to rise, but at a slower pace.
“Toronto’s Condo Authority”